Lagarde: Great Transitions in the Global Economy

Christine Lagarde held a press conference this morning and covered a lot of ground.

The IMF Managing Director wants policymakers to energize the global economic recovery that is too slow and too unbalanced.

Two main transitions are taking place in the global economy. First, Advanced economies are strengthening, while emerging market economies are growing slower. Second, the world is moving to a different kind of financial sector.

Countries need to manage this process, which will take some time, with stronger policies to make growth more inclusive and sustainable, and the financial system more stable.

Lagarde fielded questions on the IMF’s governance reforms, the global impact of a failure to raise the U.S. debt ceiling, China, Greece, Portugal, Nigeria, Spain, Slovenia, and Egypt.